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Editor: John Mortimer

Thursday, 30 May 2013

Mercedes-Benz has won a contract from the Williams F1 Team for
a long-term engine partnership for the 2014 Formula One World Championship
season onwards.

Under the
agreement, Williams will be supplied with a Mercedes-Benz Power Unit (an
internal combustion engine with an Energy Recovery System) by Mercedes AMG High
Performance Powertrains (HPP) in Brixworth, UK. Williams will continue to
manufacture its own transmission.

The 2014
regulations have set the sport's engineers the challenge of completing a 300km
race distance on a fuel load of 100 kg.

Tuesday, 28 May 2013

Volvo
Car Group (Volvo Cars) will establish a new global purchasing and manufacturing
function in order to reduce complexity and costs.

The new organisation,
claims Volvo Car group, will also create “more distinct governance, quality
assurance and cost control throughout the entire value chain”. The new unit
will be headed by Lars Wrebo, currently senior vice president manufacturing.

"This change is part
of our efforts to reduce complexity. We need to strengthen the substantial
processes within the company at the same time as we strive to reduce
bureaucracy. Lars Wrebo will have a central and comprehensive role through this
new function which will be a natural hub together with Research & Development
and Product Strategy," said Håkan Samuelsson, president and chief
executive officer of Volvo Cars.

Friday, 24 May 2013

General
Motors and Nissan Motor Company are to be reunited once more in a van project
as Nissan aims to supply its compact NV300 to ‘The General’ as a Chevrolet-branded
vehicle.

It will be recalled that
some years ago, Nissan’s operations in Barcelona manufactured some versions of GM’s
European van, marketed as the Opel and Vauxhall Vivaro. Plant managers from Vauxhall’s
plant in Luton, UK visited the plant from time to time to study Nissan’s
methods of manufacture.

Now the two manufacturers
will join forces for the first time for a vehicle of this type in North
America.

Sunday, 19 May 2013

Noel
Penny, best known the world over for his pioneering work in the development of
truck gas turbine engines, died last Friday at the age of 87.

Penny most notably received
recognition as managing director of Leyland Gas Turbines Ltd (LGT); it
developed the two-shaft gas turbine engine with regenerative heat exchangers
between 1968 and 1974. Prototype vehicles were used by several oil companies
for route proving and demonstration.

In the 1960s and 1970s, companies
such as Chrysler, Fiat, Ford, General Motors, MAN and Mercedes-Benz were all working
to develop gas turbine engines for passenger cars and trucks. The concept
proved unsuccessful, largely because of its high fuel economy. It was unable to
challenge the specific fuel economy of a diesel. More recently, Volvo has devoted some development effort to gas turbines for trucks.

Millbrook
Proving Ground’s extensive facilities in secluded Bedfordshire are expected to
be vital to its new owner, details of which will be revealed later this year.

For the utmost secrecy of any clandestine comings
and goings of both engines and new vehicles can be assured at a site which is
ideally screened from prying eyes.

Meanwhile, the seemingly endless and painstaking
process of due diligence is currently unfolding at Millbrook as accountants and
lawyers probe the minutiae of accounts, paper trails and business
practices. But also under scrutiny are the site’s security processes.

Honda
claims that F1 regulation changes have been "central" to its
participation. And joining with McLaren is a 'cheaper option' than funding an entire race team.

A
senior Honda executive explained: "Honda has a long history of advancing
our technologies and nurturing our people by participating in the world's most
prestigious automobile racing series.

"The
new F1 regulations with their significant environmental focus will inspire even
greater development of our own advanced technologies," he added.

It
will be recalled that Honda and McLaren dominated F1 from 1988 to 1991 by winning
four consecutive world drivers' titles with Ayrton Senna in 1988, 1990 and 1991
and Alain Prost in 1989.

Between
them, they produced the most successful year in F1 history, winning 15 of the
16 races in 1988.

McLaren
team principal Martin Whitmarsh described the new partnership as "a new
and exciting chapter" in his team's history. No doubt, however, Ron Dennis, McLaren's supremo, had a hand to play in this development.

Whitmarsh added: "The names of McLaren and Honda are synonymous with success in
Formula 1, and, for everyone who works for both companies, the weight of our
past achievements together lies heavily on our shoulders. But it's a mark of
the ambition and resolve we both share that we want once again to take
McLaren-Honda to the very pinnacle of Formula 1 success. Together we have a
great legacy - and we're utterly committed to maintaining it."

McLaren
will continue with current engine supplier Mercedes in 2014, but, with Honda
waiting in the wings, it will undoubtedly be a slightly uncomfortable
relationship. Meanwhile, Mercedes will also be keen to ensure that Honda has no
access to its engine technology.

McLaren
driver Jenson Button raced for Honda's factory team in F1 from 2006-8, winning
the 2006 Hungarian Grand Prix but enjoying very little other success. The
Englishman, who won the 2009 world championship for the team after it was
renamed Brawn following Honda's pull-out at the end of 2008, said he was
"thrilled and excited" about Honda's return, describing it as "a
great development for Formula 1 fans and the sport as a whole".

McLaren
managing director Jonathan Neale said Honda would be prepared to supply other
teams if required to do so, as specified in the F1 rules.

F1 engine regulations

Engine: 1.6-litre, V6s,
with single turbo. Engines can rev to 15,000rev/min, five power units per
season per driver (each engine does 4,000km). 15% fewer moving parts

Turbo: Size unlimited,
maximum revs 125,000rpm

Energy recovery
(Ers) system: 161bhp for 33.3 seconds a lap

Fuel limit: No more than 100kg
(about 140 litres) of fuel in a race; max fuel-flow rate of 100kg per hour.
This is a 30% increase in fuel efficiency

Thermal efficiency: 40% (target)

The
new F1 engine regulations have come in for criticism from F1 supremo Bernie
Ecclestone, who believes they are unnecessary, and smaller teams are concerned
about the up-front costs of the engines.

These
are significantly higher next year than they are at the moment, although the
manufacturers have all promised to ensure costs come down over a five-year
period so that they even out in the end.

Neale
noted: "Clearly F1 has to be cost-conscious but I think we have to also
recognise that F1 cannot sit still. If it's going to be a technology showcase
and contemporary with its markets, then embracing technology and making sure we
are energy efficient is ensuring it stays healthy for the long run.

So
I'm sure there will be short-term pain, but I'm also sure that these technology
steps are long-term the right way to go."

It
is claimed the engine rules were changed to make F1 more relevant to the
road-car industry, and with the hope of attracting more manufacturers back into
the sport. The new regulations could lead to engine turbocompounding, a concept that Mercedes-Benz has seriously considered and has plans to adopt .

Honda's
return appears to be a vindication, and there are rumours other companies are
considering entering the sport also. Toyota, Hyundai, VW/Audi and Ford have
been mentioned.

Thursday, 16 May 2013

Construction work has just begun
on Volkswagen’s new vehicle plant in Changsha in the province of Hunan,
south-central China.

The factory is being built in cooperation with the Chinese joint venture
Shanghai-Volkswagen (SVW).

"We are expanding our capacity in China to four million vehicles
per year by 2018 in order to meet demand from our Chinese customers," Professor
Dr. Jochem Heizmann, member of the board of management of Volkswagen AG, said
at the contract signing ceremony and ground-breaking in Changsha. He has
responsibility for "China" and is president and chief executive officer
of Volkswagen Group China.

Terry
Aldea, global executive, casting and forging operations, Ford Motor Company,
speaking today at the annual general meeting of SinterCast, held in Stockholm,
Sweden, said Ford was “well aware” of what is happening in the US diesel
pick-up market.

Aldea, who provided the
meeting with an overview of Ford’s international operations, highlighted Ford's
success as the global leader for the application of Compacted Graphite Iron
(CGI). He noted that Ford's CGI leadership began with the introduction of the first-ever
high-volume CGI engine in 2003 and continues today with an industry leading
seven CGI engines, with displacements ranging from 2.7 to 9.0 litres, used in
Ford and partner vehicles sold in Europe, Australia and the Americas.

Aldea stated that the
engine design community within Ford has embraced CGI as an element of Ford's
engine strategy.

Tuesday, 14 May 2013

Honda will make the all-new NSX supercar at a new Performance
Manufacturing Centre in Ohio, in the US.

The $70
million advanced production facility encompasses 184,000 square feet and will
be housed inside Honda's former North American Logistics facility. One interesting possibility is that Honda could use friction-stir welding (FSW) as one of its processes in the plant for the new NSX.

The site,
Honda's third car plant in Ohio, is located close to the Honda R&D Americas
Inc.’s Ohio Centre and which is engineering the supercar for production. The
R&D centre is adjacent to Honda of America Mfg.'s Marysville automotive plant, north-west of Columbus.

BMW
Group is paving the way for continued success in the future with a high level
of expenditure on new technologies and models and investments in its production
network.

"In this way, we are
preparing for the company's next phase of growth and making the BMW Group more
competitive for the future. Anyone who wishes to shape the mobility of tomorrow
must make the necessary investments today," said BMW AG chairman of the
board of management, Norbert Reithofer, at the Annual General Meeting today in
Munich.

The BMW Group will continue
to invest in existing and new locations: for example, in the new site planned
in Brazil, which will produce up to 30,000 vehicles per year. The start of
production is slated for 2014, with investments in Brazil of more than €200 million
over the coming years. Last year the BMW Group production network comprised a
total of 29 locations in 14 countries.

Volkswagen
Commercial Vehicles has wowed the crowds at the annual GTI enthusiasts' meeting
on the shores of Lake Wörthersee in Austria with an Amarok Power-Pickup concept
featuring a 3.0-litre V6 TDI engine with a power output of 272 PS and 600 Nm of
torque.

The engine is similar to that which Audi uses in
passenger cars. It has a compacted graphite iron cylinder block. The engine is always arranged longitudinally.

The Power-Pickup, based on
an Amarok single cab, is designed as a rolling workshop to carry spare parts,
tools and race equipment, with performance to take it from standstill to 62 mph
in 7.9 seconds in conjunction with an eight-speed automatic transmission and
permanent 4MOTION transmission.

Monday, 13 May 2013

Volvo Car Group
has begun production of the first engine variants in the new, high-efficiency
four-cylinder engine family.

The development and
production take place in-house at Volvo Car Group and form a vital part of the
company's strategy for independence.

The strategy of
four-cylinder petrol and diesel engines and driveline electrification is the
path that Volvo Cars has chosen for the future. With its ability to control the
development and production of engines and drivelines and by reducing the number
of engine variants, Volvo Cars claims the result is increased flexibility.

Halberg
Guss, one of the world's leading automotive foundry groups, has ordered an
upgrade of its existing compacted graphite iron (CGI) process control system
and an additional new System 3000 from the Swedish process control specialist
SinterCast.

The commissioning is
scheduled for summer 2013. This coincides with the installation of increased
liquid metal holding capacity at the Leipzig foundry.

The two System 3000
installations are required to increase Halberg's CGI capacity and productivity
in advance of increased production demand.

Sunday, 12 May 2013

JaguarLandRover
(JLR) has enhanced its Middle East test programme by opening a new engineering
test centre in Dubai, UAE, to conduct extreme hot weather vehicle research,
development and testing.

With temperatures in the
desert typically reaching 48 to 50°C in the summer months, the
new 11,120 square feet facility in the Al Barsha area of Dubai, UAE will offer
a comprehensive range of tests including durability, calibration and hot weather testing for heat and humidity.

The engineering team at the
new centre, which replaces a smaller facility in Dubai, will also test
powertrains, chassis and heat and ventilation systems, as well as the off-road
and sand driving capability of Land Rover’s unique Terrain Response system.

In
FY2012, global sales reached a record-high of 4.914 million units, up 1.4% over
FY2011. Ten new models were launched to global markets, including the new
Altima in the US; Sylphy in China; and the Note in Japan.

Carlos
Ghosn, Nissan president and chief executive officer, said: "Fiscal 2012
was marked by both successes and challenges for Nissan. We ended the year with
a sound balance sheet, record global sales, an improved brand, and an expanded
presence in critical growth markets.”

Thursday, 9 May 2013

The
all new sports car has resulted in contracts worth £2.8 billion being placed
with companies internationally, with in excess of £1.5 billion placed with
companies in the UK.

Contracts
have been awarded to more than 270 companies globally following the completion
of a global competitive tendering exercise on component sourcing for the
vehicle. Of these, 116 are based in the UK and 50 per cent are from the
Midlands.

Wednesday, 8 May 2013

For the first time, Audi AG has exceeded the
threshold of half a million deliveries after just four months. In particular
demand for the new A3 family and the Q3, Q5 and Q7 SUV models strengthened
business for the brand with the four rings.

The Ingolstadt-based premium manufacturer sold
around 133,500 cars in April, representing an increase of 6.6 per cent compared
with the same period in 2012. In total, around 503,000 customers worldwide have
chosen a new Audi since the beginning of this year, an increase of 6.7 per
cent.

“Given
the extremely difficult market situation in Europe, we see our global sales
result for April as positive. Especially the USA and China are currently setting
the pace for Audi,” said Luca de Meo, member of the board of management for
sales and marketing at AUDI AG.

Monday, 6 May 2013

Japanese
car maker Nissan is seeking 60 engineers to work at it Nissan European Technical
centre (NETC) Cranfield, Bedfordshire, according to a senior manager.

Nissan’s site in
Cranfield employs about 1,000 people creating vehicle designs for the world
market but claims to need engineers to fill a big skills gap.

David Moss, vice
president of vehicle research and development at Nissan, said the company is
about 60 engineers short, but is particularly short of electronic engineers. Cars are
becoming more and more electronics based and the lack of local skills is a
threat to the company.

Wednesday, 1 May 2013

Fiat Group achieved revenues of €19.8 billion on the back of worldwide
shipments of more than 1 million vehicles. Group revenues were 2 per cent lower
in nominal terms but flat over the prior year at constant exchange rates.

Trading
profit came in at €618 million – this compares with €806 million for Q1 2012. Net industrial debt
increased to €7.1 billion (from €6.5 billion at year-end 2012) due to seasonal
cash absorption for Fiat, but excluding Chrysler. It was partially offset by
cash generation for Chrysler. Liquidity was strong at over €21 billion.

The U.S.
vehicle market closed Q1 2013 up 6% to 3.75 million vehicles. The Group's
overall market share rose to 11.4%. Jeep vehicle sales totalled 101,000 for the
quarter, down 12% year-over-year, primarily due to the phase-out of the Jeep
Liberty, pending the production launch of the all-new 2014 Jeep Cherokee in Q2
2013, and a 12% decline for the Grand Cherokee attributable to changeover to
the new 2014 model.